Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : IRS, Tax related strategies--Traders -- Ignore unavailable to you. Want to Upgrade?

To: mod who wrote (629)	12/14/1998 2:04:00 PM
From: Stan Michael	Respond to of 1383

Dennis, To the best of my awareness (I haven't actually bought puts or exercised calls, but I see no problem since you are long) all are allowed: buying/selling calls buying/selling puts writing covered calls writing puts -- cash balance required to purchase the stock at the strike since the holder can elect to exercise at any time exercising calls -- obviously must have the cash or (I believe) they will sell the stock immediately to maintain positive cash balance Unless I totally misunderstand, net/net you must hold the cash or the stock for an exercise at any time and cannot hold a position with unlimited risk. If anyone can define the rules more precisely, please jump in... --SJM